Alfa H1 revenue rises 20% to £62.5m

Alfa Financial Software Holdings PLC (Alfa), a provider of mission-critical software for the asset finance industry, has issued a scheduled trading update for the half year ended 30 June 2025, highlighting a robust financial and operational performance. The company remains on course to meet full-year expectations, with its interim results set to be announced on 4 September 2025.

Alfa reported Q2 revenue of £31.4 million, an 18% increase year-on-year (22% at constant currency), in line with management expectations. For the half-year, revenue rose 20% to £62.5 million (22% at constant currency), reflecting broad-based growth across all key revenue streams.

Subscription revenues grew 17% year-on-year to £21.2 million, driven by continued client demand.

Software engineering revenues saw a notable surge of 72% to £10.3 million, marking a return to client-led enhancement projects following major investment in Alfa Systems 6 last year.

Delivery revenues rose 10% to £31.0 million, reflecting steady execution and client expansion.

Total contracted value (TCV) also grew significantly, reaching £211 million as of 30 June 2025, up from £193 million at the same point last year.

Alfa’s continued focus on innovation and customer collaboration has fuelled uptake of its latest platform, Alfa Systems 6. Nine customers are now live on the new version, underscoring both the ease of upgrade and the growing demand for advanced capabilities in modules such as Originations, Fleet, and Commercial Loans.

CEO Andrew Denton commented, “We are very pleased to have met our expectations for a very strong financial performance in the first half of 2025 with strong growth across all revenue streams.

“We have made further investment into the product and our people to enhance our leading position in the market. Our delivery teams have continued to execute successfully and we remain confident in the strength of our pipeline. We are well positioned to achieve our expectations for the year.”

Following a record year for new business wins in 2024, Alfa’s late-stage pipeline remains robust. Of the seven prospects currently in the pipeline, Alfa has been selected as the preferred supplier by six, with all six engagements now underway under letters of engagement. One prospect has deferred their project, citing a temporary extension of support for their legacy system, but Alfa remains confident in the overall health and depth of the pipeline.